My brother and I inherited some land from my grandmother and we had a chance to sell it as we could not afford to develop the land (yes, I know about construction loans, but it’s too late now). Well, the sale went through, split 50/50 and the money is in both our accounts. After all the fees and liabilities get paid, I’ll be looking at ~$22K to play with. My brother said I could invest in real estate to avoid taxes on the amount. What can I or should I invest in to get the most out of this one-time windfall?
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You should talk to a real estate tax advisor. I cost me $250 for an hour long conversation and saved thousands in taxes. Whatever different advice you will read in response to your post is essentially uneducated guessing.
If you recently inherited the land, you shouldn’t have much taxes you pay here, since it would only be on the increase in value from the time you inherited until the time you sold. See [https://www.nolo.com/legal-encyclopedia/if-you-inherit-home-do-you-qualify-the-home-sale-tax-exclusion.html](https://www.nolo.com/legal-encyclopedia/if-you-inherit-home-do-you-qualify-the-home-sale-tax-exclusion.html)
See [https://www.reddit.com/r/personalfinance/wiki/windfall](https://www.reddit.com/r/personalfinance/wiki/windfall) and [https://www.reddit.com/r/personalfinance/wiki/commontopics](https://www.reddit.com/r/personalfinance/wiki/commontopics) on what to do with the money.
I thought you were supposed to do this?
Put the 22k into retirement accounts – 6k for 2021, 6k for 2022, for IRA, and 20.5k for 401k , will handle it. In these tax advantaged accounts, buy FSKAX ( ENTIRE US stock market) or similar.